https://www.taxtmi.com/caselaws?id=105756 Duty demands for alleged non-accountal of cut tobacco cannot rest on a theoretical comparison between input consumption and cigarette output where the Cigarette Manual requires reconciliation through prescribed factory records and the variance between theoretical and actual production is recognised. On the facts described, the material did not establish clandestine removal of cut tobacco, so the demand was unsustainable. Waste cigarettes were accounted for by gross weight at the rolling stage, and the later segregation of tobacco and paper did not justify treating the paper component as unaccounted cut tobacco. On that basis, exemption could not be denied and penalty was not leviable. en-us Fri, 20 Sep 2002 00:00:00 +0530 Wed, 07 Mar 2012 14:18:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=105756 Duty demands for alleged non-accountal of cut tobacco cannot rest on a theoretical comparison between input consumption and cigarette output where the Cigarette Manual requires reconciliation through prescribed factory records and the variance between theoretical and actual production is recognised. On the facts described, the material did not establish clandestine removal of cut tobacco, so the demand was unsustainable. Waste cigarettes were accounted for by gross weight at the rolling stage, and the later segregation of tobacco and paper did not justify treating the paper component as unaccounted cut tobacco. On that basis, exemption could not be denied and penalty was not leviable. Case-Laws Central Excise Fri, 20 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=105756